Mortgage rates edge up as loan applications retreat

Mortgage rates inch up, but millions of people might still save money by refinancing.

Author:
Deborah Kearns

Published:
2:46 PM EDT August 8, 2019

Updated:
5:20 PM EDT August 8, 2019

The benchmark 30-year fixed-rate mortgage rose this week to 3.97 percent from 3.95 percent a week ago, according to Bankrate’s weekly survey of the nation’s largest lenders.

A year ago, it was 4.70 percent. Four weeks ago, the rate was 4.04 percent. The 30-year fixed-rate average for this week is 1.13 percentage points below the 52-week high of 5.10 percent, and is 0.03 percentage points greater than the 52-week low of 3.94 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.32 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.58 percent. This week’s rate is 0.61 percentage points lower than the 52-week average.

At the current 30-year fixed rate, you’ll pay $475.69 each month for every $100,000 you borrow, up from $474.54 last week.

At the current 15-year fixed rate, you’ll pay $705.10 each month for every $100,000 you borrow, up from $703.64 last week.

At the current 5/1 ARM rate, you’ll pay $471.67 each month for every $100,000 you borrow, up from $467.10 last week.

Mortgage applications dip again

The urgency of lower mortgage rates seems to be wearing off as total loan applications slipped 2.4 percent last week from the prior week, according to data from the Mortgage Bankers Association’s applications survey for the week ending July 5. This week’s results include an adjustment for the July Fourth holiday.

Refinance applications, which have surged in recent weeks because of lower rates, fell 7 percent from the week prior, but were 88 percent higher than the same week last year. Meanwhile, purchase applications inched up 2 percent over the previous week and 6 percent over the same time a year ago, according to MBA’s survey.

“Borrowers have been less sensitive to low rates as many borrowers have either recently refinanced or are likely waiting for rates to fall even further,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

The refinance share of activity slumped to 48.7 percent of total applications from 51 percent the week prior. The adjustable-rate mortgage (ARM) share of applications rose to 5.3 percent.

This story was originally published on Bankrate. Create an account on Bankrate today to get your free credit report along with expert advice to improve your score. Plus, set your financial goals to personalize your dashboard with resources to help you reach them.

The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.